Half Yearly Report

Ultrasis plc 

("Ultrasis" or the "Company")

Interim results for the six months ended 31 January 2011

Highlights

·; Revenue of £1,437,000 (2010: £1,668,000), being lower than the prior period due to the emergence of new NHS commissioning structures as part of the NHS reorganisation.

·; Profitability maintained. Profit before tax of £191,000 (2010: £237,000).

·; Costs tightly controlled at £1,227,000 (2010: £1,408,000).

·; Strong cash position maintained at £2,123,000 (2010: £2,248,000) with the group remaining debt free.

·; Major deal secured with UPMC, a circa US$8.0 billion US integrated healthcare provider, to create a US version of "Beating the Blues" ("BtB") and to form a joint venture to be launched in the US market.

·; Strong progress in diversifying into new markets at home and abroad with both "GetFit Wellness" solutions and "Beating the Blues".

Chief Executive, Nigel Brabbins, commented on the results:

"I am pleased to report that profitability has been maintained, despite a difficult economic climate and the impact of the continuing major structural changes in the NHS, which remains our biggest customer. The shift to GP commissioning has inevitably had an impact on these interim results, however, as new GP consortia emerge, there is evidence of a resumption in support for BtB, as the improved choice, swift access for patients and the cost benefits of the product to GPs are being better understood. We believe, as the move to GP commissioning gathers pace, that the impact on the Company's NHS business will be positive.

We have made excellent progress diversifying into new markets, both at home and abroad, with, for example, BtB being selected by the Ministry of Health in New Zealand for use across all GP practices. In addition, we have completed the rollout of BtB in Northern Ireland, which is now being offered across all GP practices, while in the Netherlands, health insurers have recommended its use throughout primary care. We have seen similar success in establishing new partnerships for the introduction of our "GetFit" wellbeing programmes with Serco and LA Fitness in the UK and PPC Worldwide in the UK, Australia and India.

Of most significance to Ultrasis, is the Company's ground breaking partnership with UPMC, a circa US$8.0 billion integrated global health enterprise based in Pittsburgh, Pennsylvania, which is investing US$1.0 million to develop a US specific version of BtB for use within its insurance services companies and, along with Ultrasis, forming a 50:50 joint venture corporation to launch the US version of BtB across the wider US market.

Passing this significant milestone for the Company and our world leading product, "Beating the Blues", will enable us to develop a new presence in the largest healthcare market in the world. The board continues to look to the future with great confidence."

For further information please contact:

Liam Herbert

Statement from Chairman and Chief Executive

The NHS - Beating the Blues

Progress in Ultrasis' NHS market has remained slow, following the recently announced Coalition policy change from PCT to GP commissioning and the concomitant reorganisation. Our view is that whilst this change has resulted in a slowdown in the uptake of "Beating the Blues", this will only be temporary and, in the medium term, the move to GP commissioning will, once the process has taken root, be beneficial. Putting decision making at the interface between GP and patient should result in demand for more immediate access to, and choice of, treatments for patients. Ultrasis has a strong track record in developing partnerships with major operators in the sector and the early creation of consortia by a large number of GPs around the country is already providing opportunities for Ultrasis and its partners to provide new and cost effective solutions.

The UK government has recently published its mental health outcomes strategy, "No health without mental health," accompanied by a four year plan of action for talking therapies, a major element of cross-government mental health strategy. This is backed by a £400 million investment, over the four years to 2014/15, and a statement that every adult that requires it should have access to psychological therapies to treat anxiety disorders or depression. It also intends to broaden the reach, to provide services to children and young people as well as people with long term conditions or medically unexplained symptoms.

Ultrasis is well positioned to capitalise on these opportunities and hopes that the new GP commissioning structure will prove the catalyst for increased uptake of "Beating the Blues", providing evidence based treatment at a fraction of the cost of traditional services, much greater speed of access and increased patient choice.

A postcode lottery in access to treatment has developed and we continue to remind UK ministers of their commitment to improve access to evidence based talking therapies for all. We hope that the renewed commitment by the UK government, "No health without mental health," will result in the oft stated objective of a universal level of provision being achieved.

International - USA

In January 2011, the Company was delighted to announce a ground breaking partnership with UPMC, a circa US$8.0 billion integrated global health enterprise, based in Pittsburgh, Pennsylvania. UPMC Insurance Services is investing US$1.0 million to develop a US specific version of BtB and will be forming a 50:50 joint venture company with Ultrasis (the "JV") to launch BtB to the wider US market. Both Ultrasis and UPMC will invest to develop and drive sales opportunities across US states, government, insurance, primary care providers, major corporations and other health care providers, seeking to enhance their mental health and wellbeing services. The US version of BtB and the JV will enable the Company to develop a new presence in the largest healthcare market in the world.

Get Fit - Wellbeing solutions

We were also pleased to announce, in January 2011, a contract with PPC Worldwide to develop the "Get Fit Health Manager" programme for integration by PPC into their international employee assistance programme ("EAP") and wellness service. The new programme has been integrated into PPC's core product offering and has initially been launched in the UK, India and Australia. We are in discussion with PPC to extend this offer to other countries they currently serve.

PPC Worldwide deploys its range of products and services in over 140 countries, covering six million employees in over 3,000 organisations.

Financial highlights

We are pleased to report a profit before tax in the six months ended 31 January 2011 of £191,000 (2010: £237,000).

Revenues in the period were £1,437,000 (2010: 1,668,000), the slight reduction reflecting a slowdown in the Company's domestic NHS market whilst it comes to terms with recent policy announcements and the shift over to GP commissioning. Despite being disappointing, these results were not unexpected, and, as set out above, we further anticipate that this policy restructuring will be beneficial to the Company over the medium term.

The group has continued to demonstrate tight control of its finances during this challenging economic climate and, accordingly, remains in strong financial health, with cash balances of £2,123,000 (2010: £2,248,000) and no debt.

Outlook

The partnership with UPMC enables Ultrasis to address the world's most significant healthcare market at low capital risk and without the need to call on shareholder funding. The Company is now in a position to pursue growth in more diverse markets, with stronger sales potential than ever before.

The board of Ultrasis is also confident that the Company's growing reputation overseas will be reflected in increasing recognition domestically and it is the Company's priority to make known the proven benefits and cost effectiveness of BtB within the emerging GP commissioning structure.

Ultrasis' growing relationships with blue chip health care providers spanning a broad geographical spectrum will continue to present opportunities for growth, both by way of sales revenue and, should the right opportunity arise, strategic acquisition.

Nigel Brabbins Gerald Malone

Chief Executive Non executive Chairman

 7th March 2011

CONSOLIDATED statement of comprehensive income for the six months ended 31 January 2011

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the six months ended 31 January 2011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION as at 31 January 2011

CONSOLIDATED CASH FLOW STATEMENT for the six months ended 31 January 2011

NOTES TO THE FINANCIAL INFORMATION for the six months ended 31 January 2011

1. Nature of financial information

The consolidated interim financial statements of Ultrasis plc (the "Company") comprise the result of the Company and its subsidiaries for the period 1 August 2010 to 31 January 2011. The financial information contained in this interim report does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. The interim financial information is unaudited and incorporates unaudited comparative figures for the interim period 1 August 2009 to 31 January 2010 and extracts from the audited financial statements for the year to 31 July 2010. The financial information for the year ended 31 July 2010 set out in this interim report does not constitute the Company's statutory accounts for that period. The statutory accounts for the year ended 31 July 2010 have been delivered to the Registrar of Companies. The auditors reported on those accounts; their report was unqualified, did not contain a statement under either Section 498 (2) or Section 498 (3) of the Companies Act 2006 and did not include references to any matters to which the auditor drew attention by way of emphasis.

The interim financial information has been prepared using International Financial Reporting Standards (IFRS and IFRIC interpretations) issued by the International Accounting Standards Board ("IASB") as adopted for use in the EU, with the exception of IAS 34, which is not required for AIM listed companies. The interim financial information has been prepared on a basis consistent with the accounting policies disclosed in the Annual Report and Accounts for the year ended 31 July 2010.

2. Basic and Diluted earnings per share

Adjusted basic earnings per share is calculated based on earnings after interest but excludes the charge for share based payments which has a non-cash effect.

The calculation of diluted alternative earnings per share assumes conversion of all potentially dilutive ordinary shares, all of which arise from share options.

The calculations of earnings per share are based on the following profits and numbers of shares: